By Megan L. Brackney
Journal of Passthrough Entities
September - October 2013 Edition
The tax matters partner ("TMP") of a TEFRA1 partnership has important duties where there is an IRS audit or controversy. One question that TMPs ask is whether a failure (or a perceived failure) to perform these duties will subject him or her to civil liability. The answer to this question is not at all clear, and for this reason, the best course for the TMP is to enter into a hold harmless or indemnification agreement with the other partners.